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HOW TO REINVENT YOUR
BUSINESS RELATIONSHIPS
THROUGH PARTNERSHIPS
GOOD OLD DAYS, NEW DAYS
THE ONLY THINGS THAT MATTERS IN
   BUSINESS IS RELATIONSHIPS
  *IT’S JUST MORE COMPLICATED
     10 THINGS YOU CAN DO…
1. FOCUS ON LOYALTY, NOT
REPEAT BUSINESS
DOES LOYALTY MATTER?

• For every 1% improvement in your
  customer retention rate, operating income
  will improve by 20%.
• A 5% reduction in customer defections
  can lead to an 85% boost in profits.
• Customer loyalty generates operating
  margins of 13%, while laggards had
  margins of just 2%.
REPEAT BUSINESS IS ACCOMPLISHED
      BY DROPPING PRICES
• Dropping prices brings in cheap
  customers, why would anyone want
  cheap customers?
THERE WAS A LITTLE ITALIAN WINE
  MAKER WHO DIDN’T HAVE AN
     ADVERTISING BUDGET
      HIS NAME WAS TONY
HE ONLY KNEW HOW TO DO ONE THING,
THAT WAS “BE NICE” TO HIS CUSTOMERS
          AND HIS GRAPES!
HE STAYED IN TOUCH WITH HIS
           CUSTOMERS
• In order to build loyalty you must keep in
  touch.
• Video or direct mail
• www. sendoutcards.com/lcalandrino
HE TOOK PHOTOS OF HIS SON AND
DAUGHTER AND SENT PHOTOS TO THE
   CUSTOMER—HE WANTED TO BE
         ‘UNFORGETABLE’
2.PARTNER WITH YOUR
            CUSTOMERS
• What is your customer’s
  situation: what do they really
  need?
• What can you do to help them?
• A bankruptcy attorney decides
  to have seminars for his
  customers—how to go back into
  business…
• Grandpa helped people take
  care of their gardens. He gave
  them lilac shoots.
HE KNEW THE BEST WAY TO GET
 PROFITABLE CUSTOMERS WAS TO
HAVE THEM BRING IN THEIR FRIENDS
HE KNEW FREE WAS GOOD, BRING YOUR
             FREINDS
GRANDPA WOULD HAVE BUILT A
       FACEBOOK PAGE
• “Are you on Facebook?
• He would have a page for his business—the
  fruit trees.
• Why? To listen to his customers and be
  nosey.
HE WOULD SIGN UP FOR
           LINKEDIN
• He joined the wine lovers group.
HE BLOGGED! HE WROTE ABOUT
           ITALY
HE DIDN’T SAY ‘CLOSED FOR THE
      WINTER’, HE SAID--
HOW MUCH DOES LOYALTY MATTER?
3.HE KNEW THE IMPORTANCE OF HIS ON
           LINE BRAND
           @TONYWINE
TONY KNEW WHY CUSTOMER’S LEFT

68% Leave because of “perceived
  indifference.”
14% Leave because of
  dissatisfaction.
9%    Leave because of competitive
  reasons.
91% of customer defections can be
  impacted by staying in touch!
  What are you doing to “stay in
  touch? Harvard Business Review
IT’S TIME TO PUT SOME
RELATIONSHIPS IN YOUR BUSINESS!

• Rules of engagement have
  changed.
• Less customers, changing
  demographics, less money.
• Building less customers
  but better customers.
4. BE CONSISTENT, SHOW WHAT YOU CAN
DO—TONY ALWAYS THOUGHT “OUT OF
THE BOX”
GIVE CUSTOMERS WHAT THEY NEED;
 EVERY DOLLAR SPENT IS WORTH A
     DISCOUNT ON THEIR GAS
CUSTOMERS WILL PAY FOR EXPERIENCES:
         A WINE TASTING!
• There was also a hotel in
  California that had free
  manicures and shoe
  shining on Thursdays.
• Guests booked their stays
  around these services.

• Parties, meet other guests,
  have fun.
5. BUILD DIFFERENTIATION
DO SOMETHING THAT NO ONE ELSE IS
  DOING..TONY’S DOG DID YOGA ON THE
                LAWN

JC Penny decides to do Yoga in their stores.
  Can you do Yoga in your business? I
  would do Zumba.
YOU MUST MAKE GETTING CUSTOMER’S
       ADDRESSES A PRIORITY
• “We would love to have you on our mailing
  list, preferred customer list or special offer
  list..”
• Keep track of points, Staples rewards,
  Panera Bread, Starbuck points—reward the
  loyal customers. The ones who keep coming
  back.
• Get their birthdays, anniversaries, kids
  birthdays—anything personal so you can
  connect.
HE LOVED FOURSQUARE-HE PUT
 IN A SPECIAL PARKING SPACE!
IF YOU’RE DOING B to B TREAT YOUR
   CUSTOMERS AS BUSINESS PARTNERS

• You need to
  understand your
  customer’s business
  as well as they do.
• Ask yourself: How
  can you help them?
HE WAS CONSISTENT, HE KNEW IT WAS
               THE KEY


• Everyday get emails and
  addresses.
• Build your data base
• Follow through with your
  customers.
• Build your niche.
WHERE ARE YOUR CUSTOMERS?

• The average business loses 10% of it’s
  customers yearly, not because of price.
• 85% of customers interviewed said they
  will pay 10-15% higher prices if the
  customer service is great.


 The key?   Consistency!
YOU DON’T NEED ALL THE CUSTOMERS
    JUST THE PROFITABLE ONES
THE LARGEST AND MOST EXPENSIVE CASKET
     COMPANY LOSES MARKET SHARE

• People wanted
  green; is this hard
  to figure out?
• You must be
  proactive.
• Remember Smith
  Corona?
6 . TONY USED THE 3 E’S—THAT WAS HIS
          GRANDAUGHTER’S JOB
        I HAD THE FRUIT STAND!

• Excitement, enthusiasm, engagement
YOU MUST KNOW WHERE YOUR
CUSTOMERS ARE AT ALL TIMES
7. TONY WAS ITALIAN, HE HAD THEIR
 PHONE NUMBERS, LICENSE PLATE
          NUMBERS!
Know where
they are, what
they like and
where they hang
out.
8. HE HOSTED A CHARITY EVENT, HIS
WIFE, CHRISTINA LOVED DOGS AND CATS
9. SPONSORED A PUBLICITY STUNT
HE THREW MONEY OUT OF A PLANE AND
  WATCHED HIS CUSTOMERS LINE UP!
10. TO HIM ALL OF THIS WAS CUSTOMER
                SERVICE


• He had someone call
  his customers and
  find out what they
  liked. He found out
  his competitor was
  giving hay rides!
• He decided to have
  trail rides.
TONY WAS MY GRANDFATHER-WERE HE
STILL ALIVE HE WOULD BE WAY AHEAD OF
           HIS COMPETITIORS
WHEN WAS THE LAST TIME YOU TALKED
      TO YOUR CUSTOMERS?
Lisbeth Calandrino

 Helping businesses build loyal
      relationships through
   customer service and sales
             training
         518.495.5380
      www.Lisbethcalandrino.com
  Redhotcustomerservice@nycap.rr.com
     http://capitalbusinessreview.com/

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Reinvent Business Relationships Through Partnerships & Loyalty

  • 1. HOW TO REINVENT YOUR BUSINESS RELATIONSHIPS THROUGH PARTNERSHIPS
  • 2.
  • 3. GOOD OLD DAYS, NEW DAYS THE ONLY THINGS THAT MATTERS IN BUSINESS IS RELATIONSHIPS *IT’S JUST MORE COMPLICATED 10 THINGS YOU CAN DO…
  • 4. 1. FOCUS ON LOYALTY, NOT REPEAT BUSINESS
  • 5. DOES LOYALTY MATTER? • For every 1% improvement in your customer retention rate, operating income will improve by 20%. • A 5% reduction in customer defections can lead to an 85% boost in profits. • Customer loyalty generates operating margins of 13%, while laggards had margins of just 2%.
  • 6. REPEAT BUSINESS IS ACCOMPLISHED BY DROPPING PRICES • Dropping prices brings in cheap customers, why would anyone want cheap customers?
  • 7. THERE WAS A LITTLE ITALIAN WINE MAKER WHO DIDN’T HAVE AN ADVERTISING BUDGET HIS NAME WAS TONY
  • 8. HE ONLY KNEW HOW TO DO ONE THING, THAT WAS “BE NICE” TO HIS CUSTOMERS AND HIS GRAPES!
  • 9. HE STAYED IN TOUCH WITH HIS CUSTOMERS • In order to build loyalty you must keep in touch. • Video or direct mail • www. sendoutcards.com/lcalandrino
  • 10. HE TOOK PHOTOS OF HIS SON AND DAUGHTER AND SENT PHOTOS TO THE CUSTOMER—HE WANTED TO BE ‘UNFORGETABLE’
  • 11. 2.PARTNER WITH YOUR CUSTOMERS • What is your customer’s situation: what do they really need? • What can you do to help them? • A bankruptcy attorney decides to have seminars for his customers—how to go back into business… • Grandpa helped people take care of their gardens. He gave them lilac shoots.
  • 12. HE KNEW THE BEST WAY TO GET PROFITABLE CUSTOMERS WAS TO HAVE THEM BRING IN THEIR FRIENDS
  • 13. HE KNEW FREE WAS GOOD, BRING YOUR FREINDS
  • 14. GRANDPA WOULD HAVE BUILT A FACEBOOK PAGE • “Are you on Facebook? • He would have a page for his business—the fruit trees. • Why? To listen to his customers and be nosey.
  • 15. HE WOULD SIGN UP FOR LINKEDIN • He joined the wine lovers group.
  • 16. HE BLOGGED! HE WROTE ABOUT ITALY
  • 17. HE DIDN’T SAY ‘CLOSED FOR THE WINTER’, HE SAID--
  • 18. HOW MUCH DOES LOYALTY MATTER?
  • 19. 3.HE KNEW THE IMPORTANCE OF HIS ON LINE BRAND @TONYWINE
  • 20. TONY KNEW WHY CUSTOMER’S LEFT 68% Leave because of “perceived indifference.” 14% Leave because of dissatisfaction. 9% Leave because of competitive reasons. 91% of customer defections can be impacted by staying in touch! What are you doing to “stay in touch? Harvard Business Review
  • 21. IT’S TIME TO PUT SOME RELATIONSHIPS IN YOUR BUSINESS! • Rules of engagement have changed. • Less customers, changing demographics, less money. • Building less customers but better customers.
  • 22. 4. BE CONSISTENT, SHOW WHAT YOU CAN DO—TONY ALWAYS THOUGHT “OUT OF THE BOX”
  • 23. GIVE CUSTOMERS WHAT THEY NEED; EVERY DOLLAR SPENT IS WORTH A DISCOUNT ON THEIR GAS
  • 24. CUSTOMERS WILL PAY FOR EXPERIENCES: A WINE TASTING! • There was also a hotel in California that had free manicures and shoe shining on Thursdays. • Guests booked their stays around these services. • Parties, meet other guests, have fun.
  • 26. DO SOMETHING THAT NO ONE ELSE IS DOING..TONY’S DOG DID YOGA ON THE LAWN JC Penny decides to do Yoga in their stores. Can you do Yoga in your business? I would do Zumba.
  • 27. YOU MUST MAKE GETTING CUSTOMER’S ADDRESSES A PRIORITY • “We would love to have you on our mailing list, preferred customer list or special offer list..” • Keep track of points, Staples rewards, Panera Bread, Starbuck points—reward the loyal customers. The ones who keep coming back. • Get their birthdays, anniversaries, kids birthdays—anything personal so you can connect.
  • 28. HE LOVED FOURSQUARE-HE PUT IN A SPECIAL PARKING SPACE!
  • 29. IF YOU’RE DOING B to B TREAT YOUR CUSTOMERS AS BUSINESS PARTNERS • You need to understand your customer’s business as well as they do. • Ask yourself: How can you help them?
  • 30. HE WAS CONSISTENT, HE KNEW IT WAS THE KEY • Everyday get emails and addresses. • Build your data base • Follow through with your customers. • Build your niche.
  • 31. WHERE ARE YOUR CUSTOMERS? • The average business loses 10% of it’s customers yearly, not because of price. • 85% of customers interviewed said they will pay 10-15% higher prices if the customer service is great. The key? Consistency!
  • 32. YOU DON’T NEED ALL THE CUSTOMERS JUST THE PROFITABLE ONES
  • 33. THE LARGEST AND MOST EXPENSIVE CASKET COMPANY LOSES MARKET SHARE • People wanted green; is this hard to figure out? • You must be proactive. • Remember Smith Corona?
  • 34. 6 . TONY USED THE 3 E’S—THAT WAS HIS GRANDAUGHTER’S JOB I HAD THE FRUIT STAND! • Excitement, enthusiasm, engagement
  • 35. YOU MUST KNOW WHERE YOUR CUSTOMERS ARE AT ALL TIMES
  • 36. 7. TONY WAS ITALIAN, HE HAD THEIR PHONE NUMBERS, LICENSE PLATE NUMBERS! Know where they are, what they like and where they hang out.
  • 37. 8. HE HOSTED A CHARITY EVENT, HIS WIFE, CHRISTINA LOVED DOGS AND CATS
  • 38. 9. SPONSORED A PUBLICITY STUNT
  • 39. HE THREW MONEY OUT OF A PLANE AND WATCHED HIS CUSTOMERS LINE UP!
  • 40. 10. TO HIM ALL OF THIS WAS CUSTOMER SERVICE • He had someone call his customers and find out what they liked. He found out his competitor was giving hay rides! • He decided to have trail rides.
  • 41. TONY WAS MY GRANDFATHER-WERE HE STILL ALIVE HE WOULD BE WAY AHEAD OF HIS COMPETITIORS
  • 42. WHEN WAS THE LAST TIME YOU TALKED TO YOUR CUSTOMERS?
  • 43. Lisbeth Calandrino Helping businesses build loyal relationships through customer service and sales training 518.495.5380 www.Lisbethcalandrino.com Redhotcustomerservice@nycap.rr.com http://capitalbusinessreview.com/